IMO you are not explaining the concept of full reporting. While the regulations may state that a company has to file their business activities for the last 3 years. They do not have to be in compliance during the previous 3 years. Obviously the reports are an application to see if the company meets the requirements of the SEC and of course the SEC does not want to see blatant abuses of their practices. They are doing a background investigation and looking at how the company was operated and so long as they were no illegal activities then more likely than not if the company qualifies the SEC will give their stamp of approval and then from there forward MUST comply with the letter of the regulations. But as far as being penalized for how they conducted business in the past 3 years if it would have been a violation the company cannot be penalized but the SEC would monitor them and make sure that they had corrected the violation to make sure it was not an ongoing practice. As we all know running a closely held company is far different than having numerous shareholders who are always wanting to know what every little detail means. But we should realize that management in its role is not there to answer all of our nuances but when we finally file it will clear it all up because on a quarterly basis we will be provided the information we want in a format we are all accustomed to.
So just lay off the arguing about the 3 year prior its just a formality, like a job application checking out your prior employers. No sanctions may come about but they would point out what meets the SEC regulations and what does not and once they file we will all be happier.
Well have a great day. Good Luck to all, LONG AND HOLDING ON FOR LONG TIME
News 
Market Data 
Discover 
